Student loans ADVICE FOR ALL INC.25 OLDER

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RxGirlie

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Hi,
Ijust have a piece of advice about student loans money and how to pay it back when you are done especially 25 and older club who are going thru this twice...If you are in pre-pharm, and have good credit...depending on where you live,, you can buy a house and lease it before going to pharm school. Have them sign an 3-4 yr lease...get equity on that property and a year or two or even immediately after finishing, refinance the home and take that money and pay off your student loans..

You will be at a win win situation especially if you are in a prime area where housing appreciates quickly..you'll be at an advantage..if you don't have good credit...work on it and make sure you get yourself a rental property it doesn't matter how small or big...EQUITY is the bottomline...

I have not done this but it's my game plan ...i plan to do this real soon... does anyone think it can work??? give me input please..am not a realtor just a hussler...thinking thru this ...

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RxGirlie said:
Hi,
Ijust have a piece of advice about student loans money and how to pay it back when you are done especially 25 and older club who are going thru this twice...If you are in pre-pharm, and have good credit...depending on where you live,, you can buy a house and lease it before going to pharm school. Have them sign an 3-4 yr lease...get equity on that property and a year or two or even immediately after finishing, refinance the home and take that money and pay off your student loans..

You will be at a win win situation especially if you are in a prime area where housing appreciates quickly..you'll be at an advantage..if you don't have good credit...work on it and make sure you get yourself a rental property it doesn't matter how small or big...EQUITY is the bottomline...

I have not done this but it's my game plan ...i plan to do this real soon... does anyone think it can work??? give me input please..am not a realtor just a hussler...thinking thru this ...

Good plan!!!!Im actually in the process!!! :thumbup:
 
If the real estate bubble bursts and home prices begin to go down as some have predicted you would actually be in more debt. Not to mention all the hassles you would have to go through with renters during your 4 years in school.
 
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TheChemist--
The housing bust, as it were, is happening now across a spectrum of houses, especially entry level houses. For the most part because of economic reasons, the government will do everything in it's power to ensure that the market will not bust. That's part of the reason they helped finance companies get more people into houses AND made it harder for the companies to evict homeowners.

RxG--
That is a plan, but it's very hard to get someone to sign a long term lease for most housing types. If you have a nice house (say mid-upper middle class) then you can rent/lease it as "Executive housing" but that market is drying up in a lot of places.

If you do not have experience with renting houses, be sure to get with someone that has rented for a long time. Pick their brain on everything, have them inspect the house and see what things they might fix/alter/etc to make it more marketable. The biggest problem with just renting the house is having a big enough nestedd to cover the months when the house is sitting empty (or your tenants aren't paying). Covering the items that break especially when they tend to break in pairs. And having a local handyman/woman for fixing things when the renters break them.

If I rent the house and it's not to a friend or a friend's immediate friend, then I'm likely to try and rent the house via Section 8 housing. I'm in a fairly good location in my town to do it and there are perks of choosing this road. The biggest downside is trying to get people out when/if I choose to move back. I've been reading where they may (or already have) structure the rules so that the lease can't be terminated at the conclusion for houses/duplexes (not apartments). That's not confirmed, it's only ramblings I've heard from friends doing this for a living.

The other big problem is that student loan rates are likely to be less then home loan rates in 5 years. Refinancing may not make fiscal sense at that point. Or rather it may not make sense to refinance the entire student loan debt. I haven't worked the math, but it might be better to keep the house and claim the double dib on deductions (from mortgage interest and student loan interest). One thing is for certain, if you haven't purchased the house, seriously for a 5/1 ARM or a 7/1 ARM. You'll get a lower rate, but are virtually locked into refinancing (or selling the house) at the end.

Other misc. things to look at are ensuring the municipality or HOA allows for 3rd party renting. In some areas they do not and that will sink you quick. Ensure the house is zoned for renters (there's a small town where I live that the default home zone is primary, single fam/owner housing only). While rare, it's something to ensure. That you take full house and room pictures (video if possible) detailing the status of the house prior to renting it out.
 
I am 26 and starting Pharm school this Fall.

Buying a house and lenting it out was exactly what I was going to do. However, I am very worried about the bubble on housing price in CA where I live.

The price of house in CA have gone up like crazy for last few years and now it is ridiculously expensive. A condo with two beds was almost $500,000; it was located in nice area but very very old though. I can't just rationalize myself that the condo was worth of $500,000. I am 100% positive that this is a bubble but not sure if it would ever burst.

Anyways, no one knows what will happen and don't want to take a risk at this point of life. I will just take a loan and pay them back after I graduate and start making > $100k a year. I hope I can pay them back as soon as possible with a lot of overtime. So I gave up the idea. But it is kind of interesting to see that others also think the same thing...

Good Luck.
 
Look at overheated markets around you(i.e. California, Arizona, Nevada, and some parts of the eAst coast). Builders are offering tons of incentives to get those houses sold. Not many people are buying. Don't count on appreciation to bail you out either. You may find yourself not being able to refinance.

i do real estate investing on the side and will do more after i graduate. this seems like a good plan, but i would look for sorry properties and improve them. don't buy a new house with the intentions of renting it out.
 
Simplistic. Everyone wants to buy, rent, and flip. How much money do you have to put down? Don't forget about other monthly finances in addition to your mortgage (taxes, insurance, PMI, water and sewage bill). With the overinflated price for property nowadays, what can you afford and how much can you rent it out for. Will it cover the monthly charges? You want to sit on it a few years and take equity out on it? how much equity do you think you built in 2-3 years? peanuts. Closing cost for refinancing will negate your equity and that is if you can obtain a lower mortgage rate. Your aiming for appreciation of the property to build equity and that is a huge gamble right now. Simplistic.
 
at this time, it may not be such a great time to buy if you intend on refinancing in three years. buy now to buy a home. prices are coming down. how much they will come down is a mystery.... if you are looking for a rental property look for a multiplex or even a duplex.
 
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